Indian healthcare provider Yatharth Hospital and Trauma Care Services has entered a definitive agreement with Pristine Infracon and its shareholders to acquire Asian Fidelis Hospital in Faridabad.
This all-cash deal, valued at around Rs1.16bn ($13.96m), will be executed by way of a 100% equity purchase from Pristine Infracon’s existing shareholders.
Asian Fidelis Hospital spans 1.25 acres and is equipped with the latest medical facilities. It has 175 operational beds, with the provision to expand this capacity to 200 beds.
The acquisition of Asian Fidelis Hospital will allow Yatharth Hospital to expand its footprint in the Delhi NCR region.
The deal is expected to close in the next two months. It will not require any government or regulatory approvals.
The acquired hospital is ready to be operationalised and set to contribute to Yatharth’s revenue immediately upon deal completion.
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Meanwhile, Yatharth Hospital posted a profit after tax (PAT) of Rs295m in the third quarter (Q3) of fiscal year (FY) 2024.
This is 39% higher than PAT of Rs213m recorded in Q3 FY23.
The company’s operating revenue for the three-month-period ended 31 December 2023 was Rs1.66bn, up 21% from Rs1.37bn in the previous year.
Average Revenue Per Occupied Bed (ARPOB) increased 14% year-on-year (YoY) to Rs 29,309. Bed occupancy rose to 52% in the reported quarter, as against 49% in Q3 FY23.
The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q3 FY24 were Rs464m, a 29% growth from Rs361m in the prior year.
Yatharth’s year-to-date (YTD) PAT came in at Rs761m, up 57% from Rs484m in YTD period of FY23.
Operating revenue for the YTD period in FY24 increased 31% to Rs4.92bn from Rs3.76bn during the previous year, while EBITDA increased 40% to Rs1.33bn from Rs953m.
Bed occupancy during the FY24 YTD period was 53% versus 44% in the same period of FY23, and ARPOB grew 8% YoY to Rs.28,316.
Yatharth is net debt-free, with net cash of Rs2.81bn as of 30 September 2023.
Yatharth Hospitals whole time director Yatharth Tyagi said: “Achieving a debt-free status further enhances our financial flexibility, enabling us to allocate resources more efficiently and strategically pursue growth opportunities.”